Indonesia: Corporate and Company Law

Disclosure obligations in the context of an M&A transaction in Indonesia depend on the type of company, such as non-public and public. For example, the acquisition of a non-public company obliges companies...

Until the mid Q3 of 2024, Indonesia's start-up industry has continued to face the challenge of a "tech winter", whereby many start-up companies experiencing a shortage of capital injections due to a decline in investors' interest.

As mandated under Law Number 4 of 2023 on Development and Strengthening of the Financial Sector ("P2SK Law") the insurance industry, the Government requires, among others; minimum capital, sharia industry spin-offs.

In February 2025, Indonesia's National Agency of Drug and Food Control (BPOM) took decisive action by recalling 91 illegal and hazardous cosmetics and skincare products that lacked proper Distribution Permits. These products were found to contain hazardous substances, including mercury, which with long-term exposure can pose serious health risks, such as an increased risk of cancer.

The Indonesian Ministry of Law has issued Regulation No. 2 of 2025 on the Verification and Supervision of Beneficial Owners of Corporations ("MOL Regulation No. 2/2025")...

On October 15, 2024, Indonesia issued Minister of Industry Regulation No. 51 of 2024 ("MOI Reg 51/2024"), introducing updated safety standards for lighters under the Indonesian...

In February 2025, Indonesia's National Agency of Drug and Food Control (BPOM) took decisive action by recalling 91 illegal and hazardous cosmetics and skincare products that lacked proper Distribution Permits. These products were found to contain hazardous substances, including mercury, which with long-term exposure can pose serious health risks, such as an increased risk of cancer.

What is the current business climate in your jurisdiction including major political, economic and/or legal activities on the horizon in your country that could have a big impact on businesses?

The Indonesian government announced on 24 February 2025, the establishment of a new Indonesian Sovereign Wealth Fund ("SWF") named, Daya Anagata Nusantara ("Danantara"), a super holding company that will manage assets of Indonesia's State-Owned Enterprise.

As a general rule in Indonesia, the appointment of a member of the board of directors (BOD) is conducted through a general meeting of shareholders (GMS), in accordance with Article 94, paragraph 1 of the Company Law.

Indonesia adopts a two-tier board system comprising the board of directors (BOD) and the board of commissioners (BOC).

SSEK Law Firm has contributed the Indonesia chapter to the Navigator on Directors' Duties: Climate Risk and Sustainability Disclosures.